Windstream Holdings Inc. of Little Rock has extended the contract of its CEO, Tony Thomas, to 2024.
The publicly traded telecommunications firm announced the extension in filing Friday with U.S. Securities and Exchange Commission.
“Thomas’ continued leadership and performance are critical to the success of Windstream and provide the continuity and stability needed for the company to focus on serving customers and all other stakeholders while the board of directors and management evaluate Windstream’s options,” the company said in the filing.
Under the deal, Thomas will be paid an annual base salary of at least $1 million. He also received a one-time, time-based cash award of $2 million that will vest in full in three years.
More: See Thomas’ employment agreement with Windstream.
The announcement comes as Windstream grapples with a $310 million judgment in federal court stemming from the 2015 spinoff of its fiber and copper assets into a separate company now known as Uniti Group Inc. of Little Rock. Windstream said its board directors were finalizing the agreement with Thomas when the ruling came down.
U.S. District Court Southern District Judge Jesse Furman ruled Feb. 15 in favor of hedge fund Aurelius Capital Management of New York, which alleged that Windstream’s spinoff violated the terms of some of its outstanding bonds.
Windstream executives had expressed confidence amid the legal wrangling, but also warned that, should the court find it in technical default on the bonds, it could be on the hook to repay bondholders immediately or forced into bankruptcy.
On Monday, the Wall Street Journal and Bloomberg reported that Windstream could filing bankruptcy protection as early as today.
Thomas’ total compensation increased by $1 million to $5.4 million in 2017 from $4.4 million in 2016, according to last year’s preliminary annual proxy statement.
(Update: Windstream has filed for Chapter 11 bankruptcy protection.)
Thomas has led Windstream since 2014, when he took over after the company’s first CEO, Jeff Gardner, left the company in part due to poor performance. Thomas had been Windstream’s CFO for eight years. In the summer of 2014, the company tapped him to be the president and CEO of its real estate investment trust spinoff, a job that eventually fell to Kenny Gunderman.
Sign up for Daily E-news
